Key Takeaways from the American Bakers Association Convention

Our CEO Antonin Picou had the chance to go to the American Bakers Association Convention, we are telling you now the key takeaway from those two days. The American Bakers Association (ABA) Convention is a highly anticipated annual event for bakery professionals. It brings together over 500 industry leaders to discuss key challenges, trends, and opportunities shaping the future of baking in America. This year’s convention focused on critical aspects such as economic pressures, technological advancements, and regulatory changes that require bakeries to innovate and adapt. For the bakery and pastry industry, understanding these challenges is key to staying competitive, ensuring sustainability, and meeting consumer demand for innovative products. PastryStar had the great honor of attending this event, and here are the Key Takeaways from the American Bakers Association Convention:

Day 1: Addressing Key Industry Challenges

Economic Pressures on Bakeries

To start about the Key Takeaways from the American Bakers Association Convention, we can says that economic factors such as tariffs on raw materials and increasing labor costs are putting significant pressure on bakeries. Wheat prices have increased by about 30% over the past two years due to global supply chain disruptions. Tariff levels on sugar and dairy in imported baking ingredients have risen as high as 25%. More than 65% of U.S. bakery workers are immigrants, making immigrant policies crucial for labor availability. Additionally, equipment prices, such as stainless steel, increased by 18% in 2024, adding further strain. For bakery businesses, these rising costs can affect pricing strategies, leading to higher product prices. PastryStar understands the economic challenges facing bakeries and offers high-quality, cost-effective ingredients that help maintain competitive pricing while ensuring consistency and excellence.

Changing Consumer Preferences and Portion Sizes

Consumer trends are shifting, with the rise of GLP-1 weight-loss drugs like Ozempic and Wegovy reshaping eating habits. This has led to a demand for smaller portions and a preference for baked goods higher in protein and fiber. In 2023, sales of large-format baked goods declined by up to 10%, while protein-enriched baked products grew by over 50%. Consumers are also leaning toward low-sugar and low-carbohydrate options, which significantly impact product development strategies. For bakeries, these trends present an opportunity to innovate and reformulate products to meet new dietary preferences.

Labor Shortages and Worker Retention

A major challenge in the bakery industry is the shortage of skilled labor, with 65% of U.S. bakery workers being immigrants. Changes in immigration policies directly impact labor availability. Many bakeries are struggling to recruit qualified staff, and 50 bakeries in 50 states have reported an inability to find skilled labor. To address this issue, some businesses are introducing new work arrangements, such as 3×12-hour shifts, to promote a better work-life balance and reduce turnover. Additionally, some companies are creating culturally inclusive holiday menus to improve employee satisfaction and retention.

AI and Automation in the Bakery Industry

Artificial Intelligence (AI) is transforming bakery operations, nurturing supply chains, and taking customer experience to the next level. AI forecasting has reduced waste related to raw ingredients by 25%, while automated inventory management has created greater efficiencies in supply chains by about 40%. More personalized marketing strategies are increasingly leading to a 35% increase in customer engagement. For bakeries looking to stay ahead of the curve, integrating AI technologies into operations is essential.

Succession Planning for Family-Owned Bakeries

Succession planning is critically important to the long-term sustainability of family-owned bakeries: about 60% of bakery businesses are family-owned, yet only 30% transition successfully to the second generation. Private equity investors play a growing role in shaping the industry’s future, with firms pursuing structured transition planning for long-term growth and stability. PastryStar recognizes the unique challenges faced by family-owned bakeries. We are committed to providing the support, expertise, and quality ingredients needed to help these businesses navigate transitions and maintain long-term success.

PastryStar is more than just a supplier of pastry and bakery ingredients, we’re a story of family, dedication, and “savoir-faire”. From our beginnings in France in 1965, we’ve grown into a top player in the North American pastry and bakery industry. It all started with Mireille and Theodore Picou, whose vision for exceptional pastry ingredients laid the foundation for PastryStar, a name now synonymous with excellence.

Day 2: Policy Changes and Their Impact on Baking

Regulatory Changes and Clean-Label Trends

During the second day of American Bakers Association (ABA) Convention the Make America Healthy Again (MAHA) movement has been talked about. This movement is driving changes in regulatory policies, including a focus on eliminating artificial additives. As a result, the commercial baking sector is preparing for potential bans on over 20 food additives. The growing demand for clean-label products, free from preservatives and artificial colors, is driving reformulation in bakeries. Bakeries must meet new consumer and regulatory expectations through these product changes. PastryStar is already ahead of this trend, offering clean-label ingredients that help bakeries create products that align with these new regulatory standards, all while maintaining exceptional taste and quality.

Impact of Ultra-Processed Foods (UPFs)

Regulators are currently working on defining ultra-processed foods (UPFs), which could impact the formulation of related products. At present, 62% of U.S. consumers are actively avoiding UPFs, and a 20% decline in sales could occur if strict labeling laws are introduced. Bakery brands are prioritizing transparency with shorter ingredient lists and increasing demand for preservative- and synthetic color-free products. For bakeries, this means reformulating products to meet new regulatory standards while maintaining flavor and texture.

PastryStar is already leading the way in clean-label product offerings, providing bakeries with high-quality ingredients that meet both consumer demand and regulatory expectations. Our expertise in creating clean-label solutions is an invaluable resource for businesses striving to stay ahead of the curve. Indeed, we believe that by staying away from highly processed foods with artificial or chemical ingredients, you can create clean-tasting products made with ingredients that consumers can recognize and would use in their own kitchens. We want your pastries to have that homemade, from-scratch taste, and we know that the best way to achieve that is by using clean-label ingredients. Not only will your pastries taste better, but they’ll also be better for you when you choose natural over artificial.

New Dietary Guidelines and Their Effect on Bakery Products

The new U.S. dietary guidelines are expected to have a significant impact on the formulation of bakery products, particularly regarding sugar and whole grain content. The updated guidelines aim for a reduction of 10-15% in sugar levels across various bakery products and encourage that at least 50% of the ingredients in breads and pastries come from whole grains.

Impact of SNAP on Healthier Bakery Products

The Path Forward: Innovation and Adaptation

As the bakery industry evolves, innovation and adaptation are crucial for success. The ABA Convention emphasized that collaboration and flexibility are key to overcoming challenges and embracing new opportunities. PastryStar is committed to providing high-quality clean-label ingredients and innovative solutions to help bakeries meet consumer demand and stay ahead of future trends. Our dedication to expertise, quality, and innovation ensures that we remain a trusted partner for bakeries seeking to thrive in a dynamic market.

At PastryStar, we are more than just a supplier of bakery ingredients; we are a trusted partner who supports your bakery’s growth and success. With our long history and unwavering commitment to quality, PastryStar helps bakeries navigate the complexities of the baking industry. Join us on our journey and discover how we can help you elevate your baking to new heights. Together, we can shape the future of baking, one innovation at a time.

In conclusion, the Key Takeaways from the American Bakers Association Convention highlight the need for the industry to adapt to economic shifts, changing consumer preferences, and regulations. Innovation in AI, clean-label products, and workforce development is key to long-term success.

PastryStar, Clean Label and Non-GMO ingredients

For ingredient manufacturers like PastryStar, the current situation poses significant challenges on prices. Companies are reassessing their strategies for sourcing raw materials, formulating products, and adjusting sales approaches to remain competitive. 

We are supporting our clients through this evolving landscape. Our dedication to innovation allows us to assist businesses in expanding their product lines beyond egg-based products. Discover our range of products and find out how we can help you craft exceptional desserts and baked goods that meet today’s demands. At PastryStar, we offer an extensive array of products designed to meet the diverse needs of the baking and culinary industries.

Our Fillings and Jams provide rich, flavorful options to enhance any pastry or dessert, from classic fruit preserves to innovative combinations. We craft our Flavors and Pastes to deliver bold, consistent tastes that transform your recipes and create unforgettable experiences. Moreover, for those seeking a glossy finish or a touch of elegance, our Glazes, Ganaches, and Fondants offer versatile solutions that elevate both the appearance and flavor of your creations. Our Pastry Mixes & Bases simplify the baking process, delivering high-quality results with ease and efficiency. Also, we provide a comprehensive range of Bakery Ingredients & Additives to support various baking needs, from improving texture to enhancing flavor profiles. Contact us to request samples and discover how PastryStar can help you innovate and meet the evolving demands of today’s market!

At PastryStar, we are committed to supporting the industry with high-quality, clean-label ingredients that meet these evolving demands. By embracing change and collaboration, we can drive the baking industry forward one innovation at a time.

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